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How Rising Interest Rates Are Reshaping Car Leases
Analysis of how the current interest rate environment is affecting lease terms and what consumers can do.
6 min read Updated 2026-03-10
Rising interest rates have significantly impacted car lease payments over the past two years. Here's what you need to know.
The Rate Impact
Money factors have increased across most manufacturers, adding $30-$80 to monthly payments compared to 2023 rates on the same vehicles.
Manufacturer Subvention
Some manufacturers are "buying down" rates with subsidized money factors to keep leasing attractive. These subvented rates represent the best deals in the market.
What Consumers Can Do
Focus on vehicles with manufacturer-subsidized rates, negotiate harder on selling price, and consider shorter terms.